All of the many, many ways that the Internet has changed the world over the past two decades, and the most important and exciting, at least for me, is the way to open up new avenues for creative people to express themselves.
There are now open platforms, such as YouTube, and that anyone can express themselves. The network also put control back in the Hand of the artist, and remember how Louis CK bypass Ticketmaster and tickets are sold, at a lower price, directly to the audience ? A man in the middle is off, and can be appealed directly to the artists, fans now possible
This idea is also what is so exciting about crowdfunding platforms like Kickstarter.
Think back to a distant world of 10 years ago. If you have an amazing idea, but not connections, then that idea will remain essentially in your head. You could try to get it out, but chances are it would go anywhere.
Now, everyone has a platform to put their ideas on. The lack of communication is no longer an obstacle. All controveries about whether or not Zach Braff belong to it or not, Kickstarter is equal in the end.
But How Kickstarter Make Money ?
Very simple, actually. If you are financing the project successfully, Kickstarter 5% fee applies to funds that have been collected.
So, let’s do a little math.
A total of $480 million was donated by three million people to 19,911 Kickstarter projects in 2013. That included both successful projects, unsuccessful projects and live projects, aka those projects that are still looking to raise money.
Kickstarter, however, does not deliver the money for successful projects. If it does not reach the goal of the project funding, then there is no fee collected.
“If the projects hits its deadline with a fraction of its funding goal and didn’t cross the 100% mark, then backers’ credit cards are not charged, and no money changes hands. Kickstarter applies no fee in those cases,” a spokesperson for Kickstarter Said.
He also said that, from a historical perspective, and pledged 89 % of the dollars pledged funded projects successfully.
Therefore, given that the information that we can take 89 % of the $ 480 million pledged, then we have been given for the financing of projects successfully completed approximately $ 427.2 million. Take 5 % of Kickstarter that take that total and you get $21.36 million in funding for 2013.
These numbers are not exact, of course ( not account for any amount of money was going toward projects live ), but do not give you a general idea of how much money Kickstarter is now experiencing.
Healthy increase their revenues in 2012, when saw the $319 million, which pledged by 2.24 million people, an increase of about 50%.
The site has seen in its entire history has pledged $ 962 million, and $ 830 of that for projects that met their goal. Only $113 million went to projects successful, while the other was pledged 20 million dollars for live projects.
Some 5.5 million people have pledged money 13.2 million times.